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Sri Lanka bond yields open flat

ECONOMYNEXT – Sri Lanka bonds opened flat while there were no two way quotes for the rupee in forex markets, after closing weaker Thursday dealers said.

The rupee had come under pressure after unprecedented liquidity injections were made by the Central Bank despite operating a soft-peg with little credibility.

The credibility of the peg had been severely weakened in the wake of Real Effective Exchange Rate targeting in recent years, which drove out investors, and-call-money-rate-targeting-with-excess-liquidity which leads to a loss of credibility.

The rupee closed around 192.50/193.00 to the US dollar in the one week forward market on Thursday with some trades around 192 levels, dealers said.

In the secondary government securities market, yields were flat in moderate trading, dealers said.
Dealers also said that the 2023 and 2024 maturities were more liquid.

A bond maturing on 15.12.2021 was not quoted.

A 2-year bond maturing on 01.10.2022 was quoted at 8.80/85 percent down from 8.85/90 percent.

A bond maturing on 01.09.2023 was quoted at 9.20/30 percent, up from 9.15/25 yesterday.

A bond maturing on 15.09.2024 was quoted at 9.30/45, stable from yesterday’s close.

A bond maturing on 15.10.2027 was quoted at 9.55/70 percent up from 9.45/65 percent.

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A bond maturing on 15.05.2030 was not quoted.

A bond maturing on 15.09.2034 was not quoted. It closed at 10.00/40 percent in its last close.
(Colombo/ Apr03/2020)